Even though companies that make cars in North America are going to have to change sourcing to meet stricter rules of origin under USMCA, the director of international public policy for Toyota and the head of Canada's auto parts trade group say they expect carmakers to do so to keep the tariff benefits. Toyota's Leila Afas noted that automakers don't have to comply with trade agreements to import, but said, “I believe many will choose to comply with USMCA.” Afas and others discussed USMCA issues during an Oct. 14 webinar hosted by Rice University.
Country of origin cases
The Canada government issued the following trade-related notices as of Oct. 14 (some may also be given separate headlines):
China and Colombia signed their free trade agreement about three months after concluding negotiations (see 2007200012), an Oct. 12 Chinese news release said, according to an unofficial translation. The agreement contains provisions on rules of origin, customs procedures, technical trade barriers and phytosanitary measures, China said. The deal will also eliminate tariffs on most Chinese and Cambodian products and establishes an “electronic network” to digitally transmit certificates of origin to speed up customs clearances.
The United Kingdom completed its second round of trade negotiations with Australia (see 2006170014) and plans to hold the third round in November, the U.K. said Oct. 12. The U.K. called the talks “productive” and said both countries have committed to “removing trade barriers and creating new opportunities for business.” Negotiators discussed a range of trade issues, including rules of origin, the role of state-owned companies, intellectual property, trade remedies and technical barriers to trade.
The Canada government issued the following trade-related notices as of Oct. 9 (some may also be given separate headlines):
There is a desire for more “uniformity” for country of origin and marking under USMCA, similar to the rules in Part 102 of NAFTA, said Heidi Bray, manager-U.S. and global customs compliance for Fiat Chrysler Automobiles. Bray and other Commercial Customs Operations Advisory Committee members mentioned a variety of USMCA “challenges” during the Oct. 7 COAC meeting. She said she thinks it would be a good idea to bring back a USMCA working group to discuss those issues.
The Canada government issued the following trade-related notices as of Oct. 7 (some may also be given separate headlines):
The Canada government issued the following trade-related notices as of Oct. 5 (some may also be given separate headlines):
The Association of Southeast Asian Nations officially implemented its self-certification scheme for origin of goods to help streamline customs procedures across member countries, the Hong Kong Trade Development Council said Oct. 5. The scheme will allow any ASEAN company that is approved as a “certified exporter” to self-certify the origin of its goods, the HKTDC said. Under this process, traders will not be required to obtain a certificate of origin from their local customs office, which will save time and money, the report said.
The U.S.-Japan mini-deal is not consistent with World Trade Organization rules, a former White House trade negotiator said, so the two sides mentioned a future phase two deal to cover substantially all trade to convince Japan's parliament to pass the accord. Because of the way the deal was structured, with small tariff reductions for Japanese exporters, it did not require a vote in Congress, Clete Willems, speaking recently on a webinar for University of Nebraska students, said. In calling the mini-deal phase one, “I think both sides were playing it cute, to be honest,” Willems, now at Akin Gump, said. He said Japan was not interested in a comprehensive bilateral trade deal, because it still wants the U.S. to rejoin the Trans-Pacific Partnership.